Discounted Cash Flow Calculation for NSEI:SPMLINFRA using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:SPMLINFRA DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
SPML Infra's share price is below the future cash flow value, and at a moderate discount (> 20%).
SPML Infra's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
SPML Infra's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SPML Infra has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Construction industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare SPML Infra's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare SPML Infra's earnings growth to the India market average as no estimate data is available.
Unable to compare SPML Infra's revenue growth to the India market average as no estimate data is available.
Unable to determine if SPML Infra is high growth as no earnings estimate data is available.
Unable to determine if SPML Infra is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
SPML Infra's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. Sushil Kumar Sethi serves as the Managing Director of SPML Infra Limited (formerly Subhash Projects & Marketing Ltd.). Mr. Sethi looks after the marketing, tendering and business development activities of the SPML Infra Ltd. He began his career in 1981 and has grown with SPML Infra Ltd., to garner rich experience in the execution of EPC contracts in water supply projects, cross country pipelines, power generation, infrastructure development and transmission and distribution works. Mr. Sethi has been an Executive Director of SPML Infra Limited since January 1, 2005.
Sushil's compensation has increased in line with SPML Infra recently becoming profitable.
Sushil's remuneration is higher than average for companies of similar size in India.
MD & Executive Director
Chief Financial Officer
Chief Operating Officer
Compliance Officer & Company Secretary
Executive Vice President of Engineering & Procurement
Executive Vice President of Projects
Vice President of Projects
Vice President of Corporate
Vice President of Projects
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the SPML Infra board of directors is about average.
What Does SPML Infra Limited's (NSE:SPMLINFRA) PE Ratio Tell You?
and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While this makes SPMLINFRA appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio. … Check out our latest analysis for SPML Infra
Why SPML Infra Limited's (NSE:SPMLINFRA) ROE Of 8.39% Does Not Tell The Whole Story
and looking to gauge the potential return on investment in SPML Infra Limited (NSE:SPMLINFRA). … SPML Infra Limited (NSE:SPMLINFRA) delivered an ROE of 8.39% over the past 12 months, which is relatively in-line with its industry average of 8.44% during the same period. … But what is more interesting is whether SPMLINFRA can sustain or improve on this level of return
Did SPML Infra Limited (NSE:SPMLINFRA) Create Value For Investors Over The Past Year?
See our latest analysis for SPML Infra Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of SPML Infra’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NSEI:SPMLINFRA Last Perf May 24th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.
Is SPML Infra Limited's (NSE:SPMLINFRA) PE Ratio A Signal To Sell For Investors?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SPMLINFRA Price per share = ₹120.25 Earnings per share = ₹2.004 ∴ Price-Earnings Ratio = ₹120.25 ÷ ₹2.004 = 60x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with SPMLINFRA, then SPMLINFRA’s P/E would naturally be higher since investors would reward SPMLINFRA’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with SPMLINFRA, SPMLINFRA’s P/E would again be higher since investors would reward SPMLINFRA’s lower risk with a higher price as well.
Why You Need To Look At This Factor Before Buying SPML Infra Limited (NSE:SPMLINFRA)
If you are looking to invest in SPML Infra Limited’s (NSEI:SPMLINFRA), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Based on this beta value, SPMLINFRA appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.
Why SPML Infra Limited (NSE:SPMLINFRA) Could Be A Buy
SPML Infra Limited (NSEI:SPMLINFRA), a construction company based in India, saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. … Furthermore, SPML Infra’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … However, with an expected decline of -4.41% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for SPML Infra.
Why SPML Infra Limited's (NSE:SPMLINFRA) Investor Composition Impacts Your Returns
A major group of owners of SPMLINFRA is individual insiders, sitting with a hefty 17.17% stake in the company. … Private Company Ownership Another group of owners that a potential investor in SPMLINFRA should consider are private companies, with a stake of 37.02%. … With this size of ownership in SPMLINFRA, this ownership class can affect the company's business strategy.
Is SPML Infra Limited (NSE:SPMLINFRA) A Financially Sound Company?
How does SPMLINFRA’s operating cash flow stack up against its debt? … We can check to see whether SPMLINFRA is able to meet its debt obligations by looking at the net interest coverage ratio. … In SPMLINFRA's, case, the ratio of 0.48x suggests that interest is not strongly covered, which means that lenders may refuse to lend the company more money, as it is seen as too risky in terms of default.Next Steps: SPMLINFRA’s high debt level indicates room for improvement.
Will SPML Infra Limited (NSE:SPMLINFRA) Continue To Underperform Its Industry?
SPML Infra Limited (NSEI:SPMLINFRA) generated a below-average return on equity of 1.26% in the past 12 months, while its industry returned 7.70%. … Check out our latest analysis for SPML Infra Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Since SPML Infra’s return does not cover its cost, with a difference of -21.74%, this means its current use of equity is not efficient and not sustainable.
Does SPML Infra Limited's (NSE:SPMLINFRA) PE Ratio Warrant A Sell?
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for SPMLINFRA Price per share = ₹137.7 Earnings per share = ₹2.004 ∴ Price-Earnings Ratio = ₹137.7 ÷ ₹2.004 = 68.7x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Since SPMLINFRA's P/E of 68.7x is higher than its industry peers (29.7x), it means that investors are paying more than they should for each dollar of SPMLINFRA's earnings. … For example, if you are inadvertently comparing riskier firms with SPMLINFRA, then SPMLINFRA’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.
SPML Infra Limited operates as an infrastructure development company in India. It operates through Construction and Trading segments. The company offers integrated water distribution, wastewater management systems, and water sourcing solutions; undertakes power transmission and distribution projects, including the construction and operation of hydro, solar, wind, and thermal power plants; and provides rural electrification, and integrated energy management solutions. It also develops bridges, flyovers, industrial infrastructure, tunnels, special economic zones, industrial/business/technology parks, airports, seaports, bus terminals, automated car parking facilities, toll express roads/highways, and bus terminals. In addition, the company provides integrated end-to-end waste management solutions, such as collection, segregation, transportation, treatment, reusability, processing, and scientific disposal of waste. Further, it develops an integrated management information system, a software solution to metering, billing, CRM, network analysis, demand forecasting and management, asset and inventory management, business intelligence, and operation and maintenance of the entire network. The company was formerly known as Subhash Projects and Marketing Limited and changed its name to SPML Infra Limited in April 2010. SPML Infra Limited was founded in 1981 and is headquartered in Kolkata, India.
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